US President-elect Donald Trump is weighing a shift in crypto regulation that could hand more authority to the Commodity Futures Trading Commission (CFTC), reducing the influence of the Securities and Exchange Commission (SEC), Fox Business reported.
The CFTC could oversee digital assets like Bitcoin and Ethereum, which have been deemed to be commodities, as well as exchanges and spot markets, potentially covering up to 70% of the $3.2 trillion crypto market, sources familiar with the matter told Fox Business in a Nov. 26 report.
SEC Control Over US Crypto Market Could Be Reduced
During the Biden administration, the US Securities and Exchange Commission (SEC), under the leadership of its outgoing Chair Gary Gensler , targeted crypto companies operating in the US with a regulation by enforcement strategy.
Should the CFTC start to regulate more of the crypto market, it would cut back the SEC’s power over the nascent digital asset space.
Gensler was in favor of the idea of the CFTC taking over the regulation of Bitcoin and its associated markets. This is after he called the leading crypto a commodity. With regards to ETH, the CFTC argued in March that the altcoin is a commodity in a complaint against the crypto exchange KuCoin.
CFTC Could Regulate Digital Commodities From Day 1 Of Trump’s Term
Former CFTC Chairman Chris Giancarlo, who is also known as “Crypto Dad,” believes the “CFTC could hit the ground running” and “begin regulating digital commodities on day one of Donald Trump’s presidency.”
Giancarlo served as the CFTC’s Chairman during the President-elect’s first term, and is reportedly being considered for the role of “crypto czar” for the incoming administration.
Over the years, he has called for the CFTC to play a bigger role in regulating crypto markets. Giancarlo also wrote a letter to the Senate Agriculture Committee in 2022 in support of the agency having authority over the spot crypto market.
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